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Wall Street is looking to Nike's (NKE) second fiscal quarter earnings results, scheduled for release on Thursday after market close. BMO Capital Markets managing director Simeon Siegel joined Morning Brief to preview his outlook on the results.
Siegel noted that Nike is one of the world's largest consumer companies "dealing with a huge turnaround," and the new CEO Elliot Hill, who is leading this transformation, is relatively unknown to analysts. He emphasized that the upcoming earnings call will be the first opportunity for Wall Street to hear the strategic plan.
"I think we have to accept this is going to take some time," Siegel said. "The trade here is do you want to believe in hope or are you going to get held down by numbers? And I think the reality is for a company like Nike, hope can be powerful."
Regarding Elliot Hill, Siegel states: "I think the guy who's been there since an intern, who's risen through this entire process of the business, is probably the perfect person to bring the business back to what it needs to be." However, he cautioned, "But I don't know that this should be revolutionary. I don't know that you and I want to wake up next year and see a dramatically different Nike than the one we know."
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This post was written by Angel Smith